As expected, London is a hotspot for top-notch connectivity, but a study from G.Network warns that despite the widespread availability of gigabit services across the UK capital, small and medium-sized The city’s businesses (SMEs) still struggle with slow and unreliable broadband, and potentially lose an estimated £28bn in annual revenue due to slow and unreliable workplace broadband.
The research, carried out by Censuswide in April and May 2024, consisted of a survey of 250 senior executives or owners of SMEs – defined as businesses comprising 250 employees or fewer – located in London. In partnership with Censuswide and Development Economics, senior leaders and business owners in the capital’s SMEs were surveyed, using the poll alongside UK Office for National Statistics (ONS) data to establish the overall impact on income economy.
According to the ONS, by 2023, London SMEs will generate £683bn in annual turnover, significantly boosting the city’s economy and cementing its status as a global economic hub.
G.Network said its research findings showed the impact connectivity issues are currently having on London SMEs, with a quarter admitting problems with slow or unreliable broadband have caused them to lose of business.
The high cost and complex process involved in securing reliable services is a barrier for many SMEs, and the survey noted that the net result of this creates a “significant” barrier to accessing fast and reliable connectivity, which leaves many businesses at a disadvantage in terms of productivity, innovation and competitiveness.
According to the poll, these broadband issues have negatively affected productivity for a quarter of all employees in small and medium-sized capital enterprises over the past three months. The estimated annual lost output due to these broadband issues is estimated at £5.34bn Gross Value Added (GVA), a key economic metric that measures the value of goods and services produced in an area, industry or sector of an economy .
Furthermore, the study showed that just over half (52%) of senior managers and business owners of London SMEs have considered moving office location to gain better access to more fast and more reliable internet in the workplace, with two-fifths saying they cannot serve. clients the way they want due to problems with slow or unreliable office internet.
Just under half (47%) of SME business owners and senior leaders identified employee connectivity in the workplace as an area undermined by poor connectivity, while over 40% said their ability to serve has been hampered to customers. SMEs identify faster response times to clients and customers as two of the main benefits they can derive from improved office broadband connectivity.
Going forward, G.Network warns that the productivity gap experienced by SMEs is likely to increase, with poor connectivity compromising their ability to use emerging technologies and remain competitive in an increasingly digital economy.
“Digital connectivity is at the heart of London’s economy, but despite its wide availability, the SMEs we spoke to for research are still struggling because the connections are too costly and complicated,” said G.Network CEO Kevin Murphy.
“As a SMEs themselves, we understand the challenges they face, and we are determined to end slow internet speed. Whether we serve a hairdresser or a hedge fund, our mission is to provide businesses of all sizes with the reliable gigabit connectivity essential to their success.”
John Dickie, CEO of London business advocacy group BusinessLDN, added: “London’s SMEs play a vital role in boosting growth and productivity in the capital. This important research from G.Network not only highlights the connectivity challenges facing businesses in the capital, but also sheds light on the fantastic growth opportunity that lies ahead, for London and beyond. UK wide, who must have access to fast and reliable broadband. improved for the city’s SMEs.”
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